The Kenya Revenue Authority (KRA) has delivered a strong signal of economic momentum as it entered the second half of the 2025/26 financial year, posting robust revenue growth that points to rising consumption, improved compliance, and resilient trade flows.
In December 2025, KRA collected Sh307.634 billion, outperforming its target of Sh284.969 billion by 8 per cent. The collection represents a year-on-year growth of 29.3 per cent, underscoring strengthening activity across key sectors of the economy.
Exchequer revenue reached Sh284.265 billion, exceeding the target by Sh22.507 billion and achieving a performance rate of 108.6 per cent. Compared to December 2024, Exchequer collections grew by 30.1 per cent, easing pressure on government borrowing and improving fiscal headroom for development spending.
Customs and Border Control delivered a record-breaking Sh85.927 billion, the highest monthly Customs collection in KRA’s history. This performance surpassed the target by 3.5 per cent and marked a 23.5 per cent increase from the same period last year. The results reflect strong import volumes and sustained demand, particularly in energy-related products.
Oil-related taxes were a major driver, growing by 23.9 per cent and exceeding targets across multiple revenue streams, including VAT on oil, import duty, Railway Development Levy, Petroleum Development Levy, Petroleum Regulatory Levy, and the Road Maintenance Levy Fund. For business leaders, this points to continued activity in logistics, manufacturing, transport, and energy-dependent sectors.
Non-oil taxes also recorded solid growth of 23.4 per cent, supported by a 14.9 per cent rise in non-oil import values, signalling broad-based trade expansion beyond fuel-related commodities.
Domestic tax revenue rose sharply to Sh221.287 billion, outperforming the target by nearly Sh20 billion and posting a 31.7 per cent year-on-year growth. This suggests improved corporate performance, higher PAYE collections, and stronger VAT receipts from local consumption.
Looking ahead, KRA remains confident of meeting its full-year revenue target of Sh2.968 trillion for FY 2025/26, which requires a growth rate of 15.4 per cent over the previous financial year. For investors and business leaders, the revenue performance strengthens the outlook for fiscal stability, predictable policy implementation, and sustained public investment.
KRA credited compliant taxpayers for the strong performance, reinforcing the link between private-sector growth, tax compliance, and Kenya’s long-term economic sustainability.
